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  1. #1
    Moderator beerdart's Avatar
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    Any Mortgage Peeps Out There?

    Im looking to see if it is worth it to refi. I have 91 months left on the 15 year @ 5%. Would it save me $$ in the long run to refi for 10 years @ 3.2


  2. #2
    Never Time To Ride antoniodef's Avatar
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    Im looking to see if it is worth it to refi. I have 91 months left on the 15 year @ 5%. Would it save me $$ in the long run to refi for 10 years @ 3.2
    By the time you are at the tail end of your loan like you, you are paying mainly principal. They get all their interest money on the front side. If you were to refinance you would be paying all the interest up front again, be it at a lower rate though. Calculate your closing costs, if any, as well.

    You should have got a break down at the beginning of your loan showing how much of each payment is interest. You will see what I mean about the bank getting theirs early. Compare your interest you have left to pay against how much you would pay on the refi plus your closing and take the cheaper route. You only have 7.5 years left.

    Just my 2cents from going through it for myself and helping parents with theirs. Not my profession.

  3. #3
    Beagleman62's Avatar
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    Quote Originally Posted by antoniodef View Post
    By the time you are at the tail end of your loan like you, you are paying mainly principal. They get all their interest money on the front side. If you were to refinance you would be paying all the interest up front again, be it at a lower rate though. Calculate your closing costs, if any, as well.

    You should have got a break down at the beginning of your loan showing how much of each payment is interest. You will see what I mean about the bank getting theirs early. Compare your interest you have left to pay against how much you would pay on the refi plus your closing and take the cheaper route. You only have 7.5 years left.

    Just my 2cents from going through it for myself and helping parents with theirs. Not my profession.
    +1
    Put a pencil to it but first look at your amortization chart. If you are half way through a 15 year loan my guess is it's not gonna save you any money. If you refi at 10 years you are adding 2.5 years to your loan. Like the last poster said, most of that payment will be interest for the first few years even on a 10 year note. My wife has been a mortgage underwriter for 18 years. I'll see what she says.

  4. #4
    Moderator beerdart's Avatar
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    Quote Originally Posted by antoniodef View Post
    By the time you are at the tail end of your loan like you, you are paying mainly principal. They get all their interest money on the front side. If you were to refinance you would be paying all the interest up front again, be it at a lower rate though. Calculate your closing costs, if any, as well.

    You should have got a break down at the beginning of your loan showing how much of each payment is interest. You will see what I mean about the bank getting theirs early. Compare your interest you have left to pay against how much you would pay on the refi plus your closing and take the cheaper route. You only have 7.5 years left.

    Just my 2cents from going through it for myself and helping parents with theirs. Not my profession.
    Thanks hat is what I am finding out. adding 2.5 years at a lower rate will not off set the cost to refi.

    Quote Originally Posted by Beagleman62 View Post
    +1
    Put a pencil to it but first look at your amortization chart. If you are half way through a 15 year loan my guess is it's not gonna save you any money. If you refi at 10 years you are adding 2.5 years to your loan. Like the last poster said, most of that payment will be interest for the first few years even on a 10 year note. My wife has been a mortgage underwriter for 18 years. I'll see what she says.
    I ran the numbers in the chart and it appears that my current loan is the best option. Im interested what your wife says. The charts do not paint the whole picture it does not factor the hidden costs.

  5. #5
    casey67's Avatar
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    I read that recent actions by Fed Reserve were to lower interest rates, even lower. You may want to check again in a couple weeks or next month.

  6. #6
    Beagleman62's Avatar
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    Quote Originally Posted by casey67 View Post
    I read that recent actions by Fed Reserve were to lower interest rates, even lower. You may want to check again in a couple weeks or next month.
    The federal funds rate is at .25%. They don't have much room to lower interest rates any more. Mortgage rates tend to follow the 10 year treasury bond. Lower money rates from the Fed don't have a whole lot of influence on mortgage rates.

  7. #7
    Petron's Avatar
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    Stay put!

  8. #8
    L Carlson's Avatar
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    Just tell pops you are going to take his place on the river down the road from me! Live in the subtropics!

  9. #9
    casey67's Avatar
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    Quote Originally Posted by Beagleman62 View Post
    Mortgage rates tend to follow the 10 year treasury bond.
    My understanding was that they were buying some sort of bonds. Hoping to lower mortgage rates

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